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Strategies & Market Trends : Selling Puts: Have Cash Will Travel

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To: taxman who wrote (983)1/24/2000 6:39:00 PM
From: KFE  Read Replies (2) of 1235
 
taxman,

lesson is don't be afraid to exercise if market maker doesn't play fair. it can always be closed out on monday in the regular market

This is very dangerous! Suppose the stock gapped open on Monday. If all you wanted to do was close out the position then you probably should have exercised and simultaneously bought the stock to cover on Friday. This would have locked in the parity price that you were looking for.

Regards,

Ken
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